E&Y Malpractice But No Fraud In CBI Case: Judge

Law360, New York (December 7, 2009, 7:14 PM EST) -- Ernst & Young did not commit fraud in auditing CBI Holding Co. Inc.'s books, but it did commit malpractice, a federal judge has ruled, handing the auditing firm a partial win on appeal and paving the way for damages proceedings in bankruptcy court.

Judge Kimba M. Wood's 49-page ruling, issued Friday in the U.S. District Court for the Southern District of New York, partially overturned a 2000 ruling against the accounting firm, which was accused of committing fraud when it failed to detect a scheme by...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.